Freedom Tax Relief review on NBC Morning News

Have you been putting off paying your taxes
out of fear you can’t pay? We are going to tell you next how you can make a deal with
the IRS.The deadline to file your taxes is tomorrow. If you have not filed because you
think you can’t afford to pay you could be headed for financial disaster. NBC’s Bay Area
Kris Sanchez has a look at how you can satisfy the tax man and maybe lower what you owe.
“I just got behind on my taxes um, one year and from there it was like trying to catch
up.” Patricia Murillo knew in 2000 that owing the IRS money would be trouble. For ten years
she tried to pay installments but when the economy tanked and she went from full time
to part time, she felt like she was drowning. “And then the IRS, once they start getting
in touch with you, it becomes a little like notices here and there, and then it becomes
a little more aggressive like, every week, every month and your like AHH!” She couldn’t
pay and didn’t want to file for bankruptcy. Online she found another option, offer in
compromise. The IRS looks at a taxpayers income and assets, reasonable living expenses, and
future earnings then settles on an amount the taxpayer can pay, for Murillo that meant
slashing a $40,000 IRS debt to about $1,000. “Had I not gotten on this program, I’d probably
still be in debt to the IRS. They would’ve, they put liens on my accounts, which I didn’t
have any money but if any money went in they would’ve taken it. Murillo used Freedom Tax to get her through the process. It’s not a free service but considering their
clients end up paying about 12 cents on the dollar that they owe, for her it was worth
the price. “At the end of the day the IRS is going to be rational and say, If your income
is less than your expenses and you have very few assets, the tax debt is truly uncollectible.
So they will settle for a much lower amount.” Staley says people owe the IRS $300 billion
in back taxes, one of the reasons they are willing to work with people, but he says you
can’t avoid the problem. You have to file your return or extension by April 15th and
try to pay as much as you can, then work to negotiate your bill. “Releif, yes yes.” But
remember, even then you are not completely off the hook. “For the next 5 years I have
to pay, file my taxes on time, one and If I do owe any money I have to pay them in full,
two and it has to be like done, otherwise I owe them everything again.” Kris Sanchez
NBC Bay Area News.

4 thoughts on “Freedom Tax Relief review on NBC Morning News

  • Offers in Compromise can be a viable option for many taxpayers, However, it should be noted that not everyone can benefit from them. It's important to explore all options before committing to one.

  • The "reasonable living expenses" budget the IRS dictates with this solution is 1.) Non negotiable, and 2.) NOT reasonable. You'll be married to this budget for 10 year (or until the debt is paid + continuously incurring interest) from the date that year's taxes are filed, and with the IRS taking everything you make above and beyond the imposed budget. The amount still owed after 10 years (if any) is forgiven. If you go this route, buy new tires before agreeing to the solution because you won't be able to afford them once you've signed the deal. This is effectively "a financially imposed house arrest with work release" program, and your sentence is Until the Debt is Paid – not to exceed 10 years.

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